EUR/USD heads for 1.20

EUR/USD will focus on the 1.2000 zone going into 2015, according to independent research company 4CAST.

4CAST believes EUR/USD will trade sideways or lower into Q1 2015, targeting the July 2012 major low at 1.2040. Beyond this, the June 2010 low of 1.1875 becomes the next target and maybe even the November 2005 low of 1.1638.

Above, “overhead supply will remain a barrier to rally attempts. Therefore into Q1 we expect a continuation of the weakness in EUR/USD seen since the May high.”